Court of Justice of the European Union

Judgment of 12 June of 2014

Case C-377/13 

In this Judgment, delivered in the context of a reference for a preliminary ruling, the  Court of Justice of the European Union rules, in line with previously settled case-law, that  Member States are not allowed to reintroduce a tax on capital contributions relating to  capital increase operations of capital companies, which were subject to this tax on 1 July  1984, but were then exempted from it.

It should also be highlighted that in this judgment the Court of Justice of the European  Union confirms that Tax Arbitration Courts operating under the aegis of the  Administrative Arbitration Centre – CAAD –, set up pursuant to Decree-Law No. 10/2011,  of 20 January, must be qualified as jurisdictional bodies and can therefore refer to the  Court for a preliminary ruling on the disputes they are requested to settle.

Court of Justice of the European Union

Judgment of 12 June 2014

Case C-39/13, C-40/13 and C-41/13

In this Judgment, issued in the context of a reference for a preliminary ruling , the Court of Justice of the European Union ruled on the compatibility of territorial restrictions to the composition of groups of companies that benefit from a tax integration regime.

In this context, the Court states, on the one hand, that the freedom of establishment precludes legislation of a Member State permitting a tax integration regime for a group of companies consisting of a parent company and a sub -subsidiary resident in that Member State, whose holdings are held through a subsidiary also resident , but prohibiting the application of such regime where the subsidiary is held through the intermediary of non-resident companies.

On the other hand, the Court states that the freedom of establishment also precludes legislation of a Member State under which a tax integration regime is applied to a group of companies consisting of a parent company and resident subsidiaries but is precluded for resident sister companies the common parent of which is not resident in that Member-State.

Court of Justice of the European Union

Judgment of 12 June of 2014

Case C-461/12

In this Judgment the Court of Justice states that the sale of a discount card entitling the holders  to  benefit  from  discounts  in  the  purchase  of  goods  or  services  from  the companies associated with the company that issues and sells the card does not constitute a transaction concerning ‘other securities’ or ‘other negotiable instruments’ and therefore, it is not a transaction that Member States must exempt from VAT.

Indeed, the cards in question have no nominal value, cannot be exchanged for money or goods with the associate companies and are not, in themselves, payment instruments and only entitle their holders to a discount in future purchases of goods or services . Moreover, the taxable amount from the sale of cards corresponds to the consideration paid by the consumers to the company that issues and sells the cards , and it is not difficult to calculate. Accordingly, the Court of Justice concludes that the sale of the cards in question cannot be literally or teleological interpreted as a transaction concerning ‘other securities’ or ‘other negotiable instruments’.